Under the law, minors cannot hold a “legal” interest in land and can only hold an “equitable” interest. This creates difficulties for landlords when granting or ending occupation rights to under-18s, as there might not be a direct contractual relationship between the landlord and minor.
A minor is defined as someone who is under 18 years old. This means that if a child turns 18 on their birthday, they are no longer considered a minor and can legally enter into contracts.
The laws around minors and land are designed to protect children from being exploited by adults who may take advantage of them financially or otherwise. However, they also make it difficult for landlords to grant or end occupation rights to young people who may not yet be able to make legal contracts themselves.
Therefore, how can you rent to tenants under 18?
A contract between an adult and a minor is binding on the adult but not on the minor unless the contract pertains to 'necessaries.' Accommodation is generally assumed to be a necessary, therefore a contract relating to the provision of accommodation for a young person under the age of 18 who has sufficient capacity is binding on them.
As a landlord, you should check your local council's website for any additional restrictions on renting to a minor. You can also check with your letting agent or landlords association for their advice on the best way to go about this.
Granting of tenancy to a third party on trust for the minor
Although a minor is not legally able to hold a tenancy, he or she can benefit from one. The tenancy can be granted to a third party, called a 'trustee,' who will hold the lease on trust for the minor until he or she reaches the age of 18.
A minor may have a beneficial interest in property, meaning that the child has the right to live in the space. If this is the case, a trustee holds legal title to the tenancy.
A trustee is a third-party individual assigned responsibility for managing the affairs of a person who lacks the legal capacity to act on their own behalf. The tenancy trustee must ensure that rent is paid and may be responsible for arranging maintenance and repairs. However, unless the trust accepts liability, most trustees will not be responsible for paying the rent out of their own resources unless they give a personal guarantee to do so.
Grant of a joint tenancy
A minor who is at least 18 years old and enters into a tenancy agreement with someone aged 18 or over can create a joint tenancy.
In the case of adult tenants holding property in trust for minor joint tenants, an agreement between all parties—including the landlord—could be drawn up to grant a sole tenancy to the minor when they reach 18 years of age. The joint tenancy would then be surrendered.
Bluestone Properties
We are an estate agency and letting agency in South London. We are a team of professionals who provide property management services and advice to both landlords and tenants. We also offer sales, lettings and property management for residential properties.
